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HALAL TOTAL QUALITY MANAGEMENT TOWARDS QUALITY PERFORMANCE. A CONCEPTUAL FRAMEWORK
IRWAN IBRAHIM
Malaysia Institute of Transport (MITRANS), Universiti Teknologi Mara, Malaysia Faculty of Business and Management, Universiti Teknologi Mara Puncak Alam Campus, MALAYSIA
irwan623@uitm.edu.my
AFIZAN AMER
Faculty of Business and Management, UiTM Kampus Rembau, Negeri Sembilan, Malaysia
afizanamer@uitm.edu.my
HASBULLAH OTHMAN
INTI International University, Malaysia hasbullah.othman@newinti.edu.my
IZHAL ABDUL HALIN
Universiti Putra Malaysia Selangor, Malaysia izhal@upm.edu.my
SAIFUL AZMIR KASDI
Department of Operations Management, Faculty of Business and Management, Universiti Teknologi Mara Puncak
Alam Campus, MALAYSIA E-mail : saifulazmir@uitm.edu.my
Corresponding author : saifulazmir@uitm.edu. my
Abstract: Total Quality Management (TQM) has become a modern system of constant improvement of the quality of all company activities. This paper aimed conceptual compared the multidimensionality of total quality management and the impact on quality performance based on halal awareness. Based on existing studies, we consider eight scopes total quality management include leadership, decision making, employee management, system approach to management, supplier management, process management, customer focus and continual improvement. Basically, this study can be applied by halal policy and decision makers in halal industry and halal studies researcher.
Keywords: Total Quality Management (TQM) tools, Halal Awareness, Quality.
1. Introduction
Organizations take up various methods to enhance the performance of their business. Add up to quality administration (TQM) has been an essential instrument which is broadly acknowledged by both assembling and administration associations as an endeavor to enhance the execution of their business. In the situation of globalization it has turned out to be exceptionally difficult to survive unless associations keep up a decent quality in their business (Shweta Bajaj et. al, 2016).
When all is said in done, the halal confirmation framework depends on the idea of Total Quality Management (TQM), which fuses devotion, buyer requests, change without increment of cost, and generation of products without rectification, rejects or waste and assessment (Ceranic' and Bozinovic', 2009; Ghazali and Sawari, 2014).
As part of advancement in Malaysia as a halal center point, it has battled for supporting the best possible picture of halal businesses, and building up a brand identity of halal items and administrations are fundamental through the brand-building process in creating markets. Among the quickest developing and best 30 developing markets all around, it is Malaysia which has spearheaded the combination of these two divisions of the Islamic economy. According to MIFC (2015), Malaysia has a comprehensive Halal ecosystem, with its thriving development of the four Halal economy components: Islamic finance, Halal food, Halal travel and Halal cosmetics and pharmaceuticals. This acknowledgment has been offered in view of specific rules, for example, the market measure, request/supply drivers, administration, mindfulness and social contemplations.
The Halal concept in consumption is not purely a religious issue, but rather it is a matter of lifestyle (Norafni, Zurina, & Syahidawati, 2013), a symbol of quality, assurance (Abdul Raufu & Naqiyuddin, 2014), and a source of wealth creation for economy that became a global phenomenon (Md Nor Aidi & Ooi, 2014).
Each Muslim ought to acknowledge and comprehend the idea of halal and emphatically create information to distinguish what is halal and what isn't and displayed that halal isn't just identified with just Muslims yet additionally have associations with and manufacturing ties among the monotheists.
2. Review of Related Literature 2.1 Leadership Management
There various definition when it comes to Leadership. Many feel that a leader is better than a boss. In total quality management we find that a Leader as a person who has adequate skills and sufficient competency to influence a group of individuals by motivating them as a subordinates and making them willingly to follow orders in the achievement of organizational goals and on achieving the organization mission and vision. According to (Kazmi, 2007), Islamic management through the knowledge acquired from revealed and other Islamic sources deals with management of organizations in applications compatible with the Islamic beliefs and practices.
This shows that even with alternative usage in the management a leader must first understand the basis of each type of management. In Islam, we are required to follow (Quran and Hadith) as guidance. By continues reading and understanding of the Qur'an all things revolving in the world is stated in the verse of the Qur'an. There are even stated in the Qur'an that as a Muslims, we have our role as Khalifah of this earth hence showing proof that there are Leadership concepts in Islam which include also the Halal requirement (Ibrahim et al, 2019). To be better Leader the best example is our Prophet Muhammad S.A.W. He is the best example of a good Leader and how he manages the Islam and people of the past. Western business school trained many either on the managerial levels or the non managerials level. This includes Muslims that some still find management orientation based on the Western Management concept where they see that religion is separated from public domain of an organization and find religion as a private matter hence there is a conviction against that of the revealed sources of knowledge. Hence an alternative and more comprehensive management theory wil arises in order to survive the test of reality and commonality. According to (Khaliq, 2003) visionary leadership, management of change, fair treatment and social justice among employees, strategic management thinking, sincerity and commitment, and motivational issues are known as management from an Islamic perspective (MIP) (Johan et al, 2019).
Islamic management deals with management of organizations from the perspective of the knowledge acquired from revealed and other Islamic sources of knowledge and results in
applications compatible with the Islamic beliefs and practices (Kazmi, 2007). Muslims understand that for their everyday life circumstances, their required cooperation is crucial when is appointed as a Leader hence the importance of Leadership concept. According to (Khaliq, 2003), A Leader triggers power of motivation in the subordinates in order to guide them in achieving their targets, vision and mission through using the management activities like controlling, planning and organizing (Amer et al. 2019). And so for a Leader to uphold the Halal Awareness in an organization, one must be able to grasp and understand what Halal is and what is Haram. Allah has provided with us guidelines through the Holy Quran, Hadith and Sunnah of Prophet Muhammad S.A.W. So as Leader he or she must be able to provide to the middle and low management with suitable guidelines on the Islamic aspect especially on the Halal Awareness so that they could provide the necessary knowledge to the workers on how Halal Awareness is Important and how to maintain the quality of product or service based on the Islamic perspective. So as either working a business or Ibadah as long as one keeps up a solid Iman (Faith and Believe) wanting to look for Allah's pleasure and blessing, it is the Muslim's definitive objective through everyday life. In this way, according to (Khaliq, 2011) Islam expects Muslims to direct their issues legitimately n their separate designation as either a Leader or subordinates. Thus govern of exception to any administration isn't emerging whatsoever; the Islamic initiative is viewed as one that helps the person in achieving joy in both the area of Business and Ibadah (Ibrahim et al, 2019).
2.2 Factual Approach to Decision Making
Decision Making is not a simple task. This also effect on the Halal activities of decision making. Customer equity influences managerial decision making about adoption of halal certification. Halal is somehow considered to be the universal food because it is consumed in both Muslims and non-Muslims societies due to tidiness, healthy environment, safety issues and animal welfare (Marzuki, Hall&Ballantine, 2012). In order to influence the customers purchasing power based on the Halal Awareness, the organization must firstly have a halal certification. Halal certification is now appearing as a global identity for quality assurance, life style bench mark for trust, safety, quality, hygiene and many other attributes (Muhammad & Kifli, 2009). According to managers of a restaurant industry, halal certification appears to be a competitive advantage for restaurants, as it is a symbol of; healthy, clean and safe food handling (Nasir & Pereira, 2008) along with regularity pressures for registering their products. Hence, this will provide the management with sufficient guidelines and data when making a decision. Other industry also has their Halal Certification that the organizations need to follow. This will definitely help in making the correct decision in order to provide the best quality and best service to the customers.
In term of Marketing, According to Nasir and Pereira (2008) halal certification has proven itself as a unique trademark socially for Muslim customer in particular for Muslim tourists. In support of above statement, (Zailani et al., 2011) reported that competitive advantage in term of attracting local and foreign tourists are acquired by halal certified restaurants. Around the globe, halal food assures safe consumption to every ethnic groups and communities (Talib et al., 2008; Yusoff, 2004; Riaz & Chaudry, 2004). That's why we can say that potential in market for halal food is tremendous (Muhammad, 2007; Muhammad et al., 2009). So this will help in the management to promote the Halal products and service to the customer worldwide as Halal Certification is recognize globally.
Acording to (Aziz &Chok, 2013), awareness can be defined as an understanding and information about particular things. Lack in awareness and knowledge about halal foods is a
result of food borne sickness which has taken so many lives. But now customers are demanding certified food as awareness level is increasing.
Cost of certification is associated with both tangible and intangible costs (Marzuki, 2012). In order to get certification, substantial amount of money has to be paid and indeed a lengthy time frame yet another problem (AL-Harran & Low, 2008). Whereas, cost of compliance is managers' perception that halal certification is very difficult to follow and very challenging to maintain as a standard (Yusoff, Chik& Mohamad, 2004). Hence, the organization will see this as another factors for them to make the decision. It is well known that cost can also provide the facts and data for a management of that organization to do the required decision.
Halal certification is not only the religious concern because it is appearing as a global identity for quality assurance, life style and many other attributes (Muhammad et al., 2009). Halal concept is presenting itself as a bench mark for trust, safety, quality and hygiene among Non-Muslims (Marzuki, 2012).
The study by (Malik, 2016) also revealed that two factors of halal certification, customer perspective and competitor perspective influence restaurant performance. When managers take decision about the adoption of halal certification keeping in view customer perspective or competitor perspective, restaurant performance is positively affected. Hence decision making is not only look from internal point of view but also external. And in terms of the Halal Awareness the decision making have also to include the legal and Halal requirement (Halal Certificate).
2.3 Employee Management
According to Cemal, Oznur, Songül, Büsra (2012) stated that the important of TQM for worker contribution is to advance the human aspects of the quality framework in order to adjust in the changing of surrounding. (Cooper et al., 1994) meanwhile defined that employee management as the information, thoughts and ability of people that are increased through various activities such as formal instruction on the off work and on job training. This is the most crucial part in improving and expanding business development. All of these elements are useful to enable directing a decision towards beneficial initiatives and business success (Pena, 2004). These activities are also helpful when creating values in business which would potentially specifies them from their business rivals. It is clearly necessary to implement them to have the most positive impact on a company's business achievement (Seleimet al., 2007). In the labor economic theory, the laborers need to possess good techniques and achievement that can be used to generate output and worker's expectation (Rephann, 2002).
Becker (1964) posited that having both education and training is the most important investment related to the employee management in expecting to increase returns on future profit. Meanwhile, Doucouliagos (1997) stated that employee management is not only helpful to persuade employees and helps in innovating through research and improvement that will eventually create a method for the young generation in the future to coop with the economy and society. In relation to the research topic, employee management is useful as an influencing factor in obtaining the halal total quality management for an example certification can be a tool for better performance by building the trust and confidence in products' ingredients which should be followed by increasing of sales. The qualified employee is able to understand the importance and operationalize the progress of the halal certification, which is included as one of the requirements by the halal governing authority. The requirements of employee management can be complied with motivation, knowledge and skills as well as experience of the employee themselves.
2.4 System Approach to Management
One of the fundamental components of TQM is the way to deal with management. An important part of the system approach management of quality is the strategic and systematic approach to achieving an organization's vision, mission, and goals. This process also has been called as strategic planning or strategic management includes the formulation of a strategic plan that integrates quality as a core component. The term system approach or strategic planning refers to how the companies formulate its strategy and policy to achieve excellence in organizational performance (David, 2007). The elements of customer driven quality should be an integral part of strategic planning (Samson and Terziovski, 1999). For example, customer requirement towards safety and quality of food products should be incorporated in company business strategic planning. Its purpose is to translate customer requirement regarding product quality and safety in product development process and allocate necessary resources (Costa Dias, Sant'Ana, Cruz, Assis, Faria, Fernandes de Oleveira and Bona, 2011). Therefore, according to (Cemal, Oznur, Songül, Büsra 2012) execution system approach to management positively influence innovative performance in halal total quality management.
2.5 Supplier Management
Prior study on halal supply management emphasizes the adoption of Halal elements from the start until the end of supply chain. Halal product not only emphasis on the Islamic law, it also emphasis on the cleanliness and safety of the products themselves. Therefore, the guidelines and regulation pertaining Halal products ought to be carried out from generating of the uncooked materials to the distribution structures. It means that the supply chain of halal products start from the beginning until they reach end customers (Manzouri, Nizam Ab Rahman, Saibani, & Rosmawati Che Mohd Zain, 2013).
According to (Manzouri et al., 2013), there was significant relationship among the quantity of employees and imposing lean supply chain (LSC) amongst Halal food corporations. The results display that the price of LSC implementation will increase because the range of employees will increase (Manzouri et al., 2013).
Adapting the Halal-Toyyiban Assurance in logistics had a mitigating effect on the supply chain vulnerabilities as well as an enhancing effect on the supply chain capabilities. It was also discovered that the Halal-Toyyiban standards imparted on the supply chain for those that adapted the standards into their supply chain procedures (Aigbogun, Ghazali, & Razali, 2014). According to (Tan, Ali, Makhbul, & Ismail, 2017), the halal assurance system does appear to require client integration strategies to enhance product exceptional. Halal guarantee device can be taken into consideration as crucial exercise within halal meals production and have to have a comparable directional as Total Quality Management (TQM) on operation performance.
2.6 Process Management
According to (Psomas, Vouzas, & Kafetzopoulos, 2014), the importance of process management in ensuring continuous improvement and high quality outcome in the food company is expected influence the safety of the food itself. Related study had emphasized that process management need to be applied in ensuring the food or products are Halal-Toyyiban. This supported by the findings that there is a significant positive relationship with trust (Karim & Nawi, 2016). Halal certification is crucial process as to velocity of change globalisation, along technology and technology development, which in itself helps projects that simplify the producing manner and also stimulates more scientifically based totally products with non-stop exchange in product method (Shafie, Malaya, & Lumpur, 2006).
Based on previous related studies, it shows that there is lack of awareness on halal assurance in supplier management and process management. This support by (Karim & Nawi, 2016) that there is scarce information in relation the implementation between TQM practices and trust attributes of certified halal food products. In addition, halal assurance is relatively new and insufficient empirical research on it (Tan et al., 2017).
2.7 Customer Focus
Quality Management also involves customer focus where a firm institutionalizes the customer-first culture. It does not only demand commitment from the managers but also all employees firm wide (Yaacob. Z, 2014). A firm would be able to satisfy their customer by fulfilling the expectations, needs and wants of their customers (Zakaria & Abdul Talib, 2010). The success of Quality Management is consistently evaluated by using customer satisfaction as a criterion measure (Das et al., 2011; Voon, Hamali & Ranggai, 2012).
Many activities that have direct or indirect effect on customer satisfaction are housed in Quality Management firms. To implement all customer-focused activities effectively, a firm would work closely with the customers in order to understand the complexities and dynamics of their demand and expectation (Mehra & Ranganathan, 2008). The closeness between customers and the business allows customer-focused entities to keep track of changes that occur in the market. The effectiveness of customer focus in improving customer satisfaction has been empirically reported by many authors (Mehra & Ranganathan, 2008).
Nowadays, many customer either Muslim or Non-Muslim consumer realize what halal quality management it is. The demand towards halal product is not only among Muslim customers, but it has reached out to customers from other religions as well since they recognize the quality associated with halal products (Hayat M. Awan et al., 2014). However, regarding to Hanzaee and Ramezani (2011) claimed that halal is not an issue limited to religious discussion, and yet is has not been viewed as an image of value. This is on the grounds that there has been an absence of simple learning on the association between Halal ideas for example, Halal awareness and Halal accreditation with buy goal with regards to buying Halal items (Aziz and Chok, 2013).
According to previous studies (Bang et al., 2000) learning has an impact on expectation, as expanding information is probably going to impact the aim. Basically, the learning toward the effect of exhibiting related thought, for instance, publicizing and stamping with Halal purchase objective is generally difficult to reach. Regardless of the way that dealers are beginning to achieve an understanding on the centrality of Halal accreditation and Halal care, still beside no is considered Halal parts and distinctive determinants that influence purchase desire.
2.8 Continual Improvement
Continuous improvement (CI), one of the essential standards of aggregate quality administration (TQM), is currently being drilled in relatively every association in any case their tendencies, shapes, and sizes.
Powerful ceaseless change program is one of the key necessities for making and maintaining authoritative progress in a focused market, and keeping in mind that a great deal of consideration has been paid to persistent change programs by chiefs, in any case, the occurrences of disappointments in actualizing compelling consistent change programs are fundamentally more than those of achievements. However, continuous improvement is a critical factor of halal quality management. The implementation of halal quality management requires a firm to continuously improve the whole aspect that would contribute to the improvement of the planning, process, and/or output. It is a continual journey towards achieving quality objectives,
thus demands a long-term view from managers. The practice of continuous improvement under quality management is also considered critical due to the truth that quality is particularly connected with client propensities and conduct (Gayatri, Hume, & Mort, 2011 ) that is dynamic across time.
Commitment of the management towards quality management is reflected in their managerial activities. For committed managers, they build a solid quality management plan, allocate adequate resources to support its implementation, play active roles in mobilizing the activities, and become a role model for the entire organizational team (Das et al., 2011 ).
3. Theoretical Framework
Based on the above relationship of the respective independent variable and the quality performance, hence the theoretical framework of the study is as below: Independent Variable
TOTAL QUALITY MANAGEMENT
• Leadership Management
• Factual Approach to Decision Making
• Employee Management
• System Approach to Management
• Supplier Management
Mediating
Dependent Variable
Halal Awareness
QUALITY PERFORMANCE
lat the eight independent variables that will affect the
Figure 1.1: Halal Total Quality Management Source: Adapted from Cemel et.al (2012).
d
dependent variable. Halal awareness used as mediating in this journal between the relationship of Total Quality Management and Quality Performance. The eight variables are leadership management, factual approach to decision making, employee management, system approach to management, process management, customer focus and continual improvement. The theoretical framework works to give a clear picture on the journal research.
4. Hypotheses
Based on the research framework, the hypotheses developments are as follows:
H1: There is a positive significant relationship between TQM activity under Leadership Management and Quality Performance through Halal Awareness of an organization.
H2: There is a positive significant relationship between TQM activity under Factual Approach of Decision Making and Quality Performance through Halal Awareness of an organization.
H3: There is a positive significant relationship between TQM activity under Employee Management and Quality Performance through Halal Awareness of an organization.
H4: There is a positive significant relationship between TQM activity under System Approach to Management and Quality Performance through Halal Awareness of an organization.
H5: There is a positive significant relationship between TQM activity under Supplier Management and Quality Performance through Halal Awareness of an organization.
H6: There is a positive significant relationship between TQM activity under Process
Management and Quality Performance through Halal Awareness of an organization. H7: There is a positive significant relationship between TQM activity under Customer Focus and Quality Performance through Halal Awareness of an organization.
H8: There is a positive significant relationship between TQM activity under Continual Improvement and Quality Performance through Halal Awareness of an organization.
5. Methodology
A tremendous measure of writing is accessible on TQM. The survey on writing was done in a precise way. So as to choose the articles of TQM the accompanying database of online diaries were looked, these are as per the following:
• EBSCO Business Source Complete.
• Emerald Management Extra.
• Elsevier's Science Direct.
• Proquest ABI/Inform Complete.
As it was unrealistic to peruse every one of the articles accessible in these databases, criteria were set for incorporating the articles in this investigation. These criteria were as specified beneath:
(1) Only those articles which were published in a journal within time period 2006 to 2018 were considered for the study. Dissertation, non-published papers, and conference papers were not considered for the study.
(2) Only those papers which have secured the beneath said regions of TQM in the previously mentioned residency were considered for the examination:
• Critical measurements of TQM;
• Identification and usage of TQM rehearses;
• Impact of TQM on business execution;
• Development of TQM Framework; and
• Relationship of TQM with representative fulfillment, consumer loyalty, business execution, and learning sharing.
(3) Finally the discoveries were ordered into two segments, to be specific, practices of TQM and effect of TQM and for this investigation just those articles were considered which had said the factors in no less than one of the subheads as specified previously.
Once the criteria of determination of an article to be incorporated were concluded, a hunt on the articles was made in the previously mentioned databases. An aggregate of 100 articles were evaluate chosen for the examination.
6. Conclusion
This study shown that the integration of halal awareness or assurance with TQM significantly influences the impact on quality performance. The results of the study implied that all hypotheses developed have positive significant relationship with halal awareness. The insufficient of awareness on Halal assurance in TQM especially in supplier management and process management provide leads
to future researcher to explore on the integration of halal assurance along the TQM practices. Furthermore, this study also provides new idea to future researchers on the importance and the implementation of halal assurance because there is limited information on this as it is relatively new and insufficient of empirical research on it. The implementation of Halal assurance practices can be integrated with or directional with the TQM practices. It is because Halal assurance apply the concept of Halal-Toyyiban, which every processes of making the products until reach end customers are Shariah complied. This concept is not religious matter, it is matter of the products are safe to be consumed by all people. Thus, it is time that halal assurance need to be considered as standard practice by organizations the same as TQM practices.
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